Kasikorn Securities has expressed a positive view for CP All Public Company Limited (SET: CPALL) after its board of disinterested directors resolved not to include Counter Service, Thai Smart Card, and CP Axtra in ACMH’s virtual bank group (CPG). The move, according to the board, is grounded in the subsidiaries’ central role within CPALL’s earnings profile and the 7-Eleven ecosystem.
Removing these businesses from CPALL’s direct oversight could weaken operational flexibility, heighten regulatory and related-party risks, and complicate compliance with the rules of Thailand’s central bank and Finance Ministry. Notably, the plan to transfer these subsidiaries to ACMH—a CPG group entity—will be put to minority shareholders for approval at an Extraordinary General Meeting (EGM) scheduled for May 29, 2026. The transaction is considered a related-party matter due to its structure.
Kasikorn Securities agrees with CPALL’s disinterested directors. In its commentary, the brokerage highlights Counter Service as an essential asset for driving 7-Eleven store traffic and supporting the convenience store format. There is also uncertainty over how compensation for shifting these subsidiaries would be structured, creating further execution risk.
Overall, Kasikorn Securities views the board’s decision as a means to preserve strategic control and maintain sound governance—steps seen as beneficial for minority shareholders. The brokerage continues to rate CPALL as “Outperform” with a target price of Bt57.2 per share.
Meanwhile, InnovestX Securities (INVX) states that this issue emerged from the Bank of Thailand’s framework, which is a guideline (not a regulation) suggesting that Virtual Banks should consolidate all companies holding licenses (bill payment services from Counter Services, Thai Smartcard, CPAXT) under a single entity.
INVX estimates that in the short term, this issue could create a negative overhang on CPALL/CPAXT’s share prices until the extraordinary shareholders’ meeting scheduled for May 29, 2026, convenes to consider and approve or reject the inclusion of these three subsidiaries into the Virtual Bank group. As this is a connected transaction, only non-related shareholders will be eligible to vote.
If shareholders resolve not to approve, it would be positive in the sense that all three mentioned companies (which account for over 30% of CPALL’s profits) could continue to operate under their current structure without the added complexity of extra regulatory requirements.
If shareholders resolve to approve, there remain important issues to monitor, such as the form of compensation for the asset transfer (cash/shares), the appropriate method for valuing these businesses, and the impact that operating under banking sector regulations might have, possibly reducing operational flexibility.
INVX maintains an Outperform recommendation for CPALL and a Neutral recommendation for CPAXT.
